Texas AG Issues Opinion on Landmen and Wind Power Leasing

Gray Reed
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It would be a heavy burden to catalogue all of the wrongs one might attribute to our Texas Attorney General. Now, we have another one. Opinion KP-0467, responding to a request from the Texas Real Estate Commission, concluded that a person who negotiates a lease of property for the development of a wind power project on behalf of another, for compensation, is required to hold a license issued by the TREC.

 The Opinion cites Sections 1101 and 954 of the Occupations Code. In particular, Section 954 was amended by Sente Bill 604 in the 88th Legislature to excuse landmen from TREC licensing requirements.  I think it is fair to say that the industry and the Legislature thought they had wind leasing covered in SB 604. The AG disagrees. Because the Opinion is not enforceable and no one’s livelihood depends on the nuances, I will not get into the details of the reasoning.  

After the Opinion was issued, AAPL President Brooks Yates responded in this letter. The AAPL believes the Opinion reached the wrong result and will be detrimental to the interests of landmen and wind power developers.

FYI here is Senate Bill 604.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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